New JerseyA796221st Legislature (2026-2027)HouseWALLET

Requires electric public utilities to develop and apply special rules for certain data centers to protect non-data center customers from increased costs.**

Sponsored By: David Bailey Jr. (Democratic), John J. Burzichelli (Democratic), Clinton Calabrese (Democratic), Joe Danielsen (Democratic), John F. McKeon (Democratic), Eliana Pintor Marin (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 0 benefits, 0 costs, 5 mixed.

Homes Get Priority During Power Emergencies

The Board's standards must require utilities to cut large data center loads before residential loads during system emergencies. Designated critical loads are excluded, and data center cuts count as firm load shedding. Separately, data centers that secure capacity resources receive protection from earlier cuts under regional connect-and-manage programs or their successors. That protection applies only up to the capacity those resources provide.

Data Center Payment Guarantees With Exemptions

Large data centers must guarantee payment for at least 85% of requested power for 10 years, unless Board standards set otherwise. Utilities must require financial security against closure or lower-than-expected use; new customers must pay reasonable connection and system-study costs. The Board can recover stranded costs only from the large data center customer class. Service approved before July 7, 2026, is exempt from these guarantees, security requirements, and specified study costs. The Board can phase in cost allocation for that approved amount, but added service faces the tariff and applicable requirements.

Data Centers Pay Their Power Costs

The law takes effect July 7, 2026, and requires New Jersey's utility board to set standards within 12 months. The law defines large data centers at 100 megawatts; the Board's service standards set a threshold no greater than 50 megawatts. Related facilities count together, and data centers must cover their service costs without shifting them to other customers. Utilities must seek special rate approval within 180 days after the standards are set; rates apply after approval. Covered pending applications face those rates when service starts, unless the Board finds that unfair. Applicants must disclose similar pending requests elsewhere, while utilities screen for duplicate construction and protect sensitive business information.

Data Centers Share Backup Power Costs

Utilities must show data centers the load and capacity information they plan to submit to the regional grid operator. Data centers have a chance to correct that information before submission. When their load enters a large-load adjustment, they must pay a proportionate share of applicable reliability backstop costs. Capacity resources they secure reduce that share, using capacity values assessed by the Board.

Flexible Data Centers Get Priority Connections

Large data centers must make at least one demand-flexibility commitment and report actual performance each year. Options include power cuts, enforceable performance standards with financial penalties, qualifying contracts, or a voluntary demand-reduction trade program. That program lets data centers pay other customers on the same utility system for verified demand reductions. Utilities cannot charge other ratepayers for program transaction costs, and reductions generally cannot count again under other government programs. Utilities must prioritize connections for data centers with binding commitments to provide clean generation, storage, or qualifying demand reductions.

Sponsors & Cosponsors

Sponsors

  • David Bailey Jr.

    Democratic • House

  • John J. Burzichelli

    Democratic • Senate

  • Clinton Calabrese

    Democratic • House

  • Joe Danielsen

    Democratic • House

  • John F. McKeon

    Democratic • Senate

  • Eliana Pintor Marin

    Democratic • House

Cosponsors

  • Rosaura Bagolie

    Democratic • House

  • James Beach

    Democratic • Senate

  • Ravi S. Bhalla

    Democratic • House

  • Katie Brennan

    Democratic • House

  • Joseph P. Cryan

    Democratic • Senate

  • Patrick J. Diegnan Jr.

    Democratic • Senate

  • Margie Donlon M.D.

    Democratic • House

  • Linda R. Greenstein

    Democratic • Senate

  • Robert J. Karabinchak

    Democratic • House

  • Andrew Macurdy

    Democratic • House

  • Angela V. McKnight

    Democratic • Senate

  • William F. Moen Jr.

    Democratic • House

  • Paul D. Moriarty

    Democratic • Senate

  • Raj Mukherji

    Democratic • Senate

  • Luanne M. Peterpaul Esq.

    Democratic • House

  • Verlina Reynolds-Jackson

    Democratic • House

  • Balvir Singh

    Democratic • House

  • Troy Singleton

    Democratic • Senate

  • Shanique Speight

    Democratic • House

  • Lisa Swain

    Democratic • House

  • Chris Tully

    Democratic • House

  • Shirley K. Turner

    Democratic • Senate

  • Michael Venezia

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 141 • No: 47

House vote • 6/30/2026

CONCUR IN SA

Yes: 59 • No: 18

Senate vote • 6/30/2026

3RDG FINAL PASSAGE

Yes: 27 • No: 11

House vote • 3/23/2026

3RDG FINAL PASSAGE

Yes: 55 • No: 18

Actions Timeline

  1. Governor: APP

    7/7/2026Governor
  2. Approved by Governor — P.L.2026, c.32.

    7/7/2026Governor
  3. Passed Assembly, PBH — (59-18-0)

    6/30/2026House
  4. Received in Assembly, 2RAC

    6/30/2026House
  5. Passed Senate — (27-11)

    6/30/2026Senate
  6. Substituted for S731 (3R)

    6/30/2026Senate
  7. SA, 2nd Reading in Senate — (Voice) (Ruiz)

    6/18/2026Senate
  8. SA, 2nd Reading in Senate — (Voice) (Ruiz)

    5/28/2026Senate
  9. Received in Senate, SWR, 2nd Reading in Senate

    5/4/2026Senate
  10. Passed Assembly — (55-18-0)

    3/23/2026House
  11. REP/ACA, 2nd Reading in Assembly

    3/19/2026House
  12. RCM Assembly Appropriations Committee

    3/19/2026House
  13. REP/ACA, 2nd Reading in Assembly

    2/12/2026House
  14. Introduced, 1st Reading in Assembly, Referred to Assembly Telecommunications and Utilities Committee

    1/13/2026House

Bill Text

  • Version AL2026

    9/17/2026

  • Senate 6/18/26 4R

    7/1/2026

  • Senate 6/18/26 3R

    6/18/2026

  • Senate 5/28/26 2R

    5/29/2026

  • Senate 5/28/26 3R

    5/29/2026

  • Assembly Appropriations (3/19/26 2R)

    3/24/2026

  • Assembly Appropriations Substitute (3/19/26 1R)

    3/20/2026

  • Assembly Telecommunications and Utilities (2/12/26 1R)

    3/20/2026

  • Assembly Telecommunications and Utilities Substitute (2/12/26)

    2/13/2026

  • As Introduced

    2/12/2026

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